Historical New Legal Breakthrough by The Indonesian Constitutional Court

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There was a Historical New Breakthrough made by the Indonesian Constitutional Court,  where The Indonesian Constitutional Court had allowed to publicly openly hear  the contents of the  tapping of the Phone Conversation between certain businessman, and indicated certain Officers from the Legal Institution  and several "Case Broker", which indicated that there was  a scenario to frame the Chairman of the KPK ( Indonesian Corruption Eradication Commission (KPK) ), who are trying to abolish the Corruption in Indonesia, as if  they received  bribery  monies, which was openly broadcast  by  TVONE Channel and MetroTV and could be watched by 200 million viewers in Indonesia .

It was really a Historical New Breakthrough  on  this  Openness  Era in Indonesia, because the People of Indonesia who are very eager to establish  Legal  Justice  can watch  lively on the TV Media directly from the Indonesian Constitutional Court,  the phone tapping conservations which strongly indicates scenario of so Called Court Mafia  in Indonesia between such business man, and several officers indicated from the Legal Institution Bodies.

Immediately after such TV Broadcast was made, demonstration had rapidly spread in many cities in Indonesia by students and the people who are concern of  Legal Justice, including many signatures to support the Victim Chairman of the KPK who were perceived as being Criminalized,  as if such Honest Chairman from KPK called CH and B had conducted bribery, which was Strongly Denied by such Respective Victims.

What made the people mad, was that there was "Distrust from the People" upon the Legal Institution in Indonesia who appears not to be on the side of the People's want of  Law Justice. This KPK Institution was actually established,  in response to the "distrust of the People of the Republic of Indonesia "upon the Indonesian Legal Institution" in handling the Corruption Cases.

We as Business Lawyer, are also really concerned in  the Law Justice and Equality before the Law in Indonesia, that is why some of the Alumni of the Indonesian University  had signed the support for the Victims of this Criminalization.

In order to build a Healthy Business Climate in Indonesia, Law Certainty is really important and significant. We noticed that the wages and the living standard of the Indonesian Legal Institution had to be increased and taken care by the Government and the Parliament, so that they can  fully concentrated on doing their task and duties  in serving the Peoples Hunger for Law Justice and not trying to find out a way to cope their needs for their day to day Living Costs.

In respond to the above development The President had established the so called Team 8, who is responsible to conduct  the Findings Facts  of this Case and make a Recommendation to the President within this 2 weeks time.

The above developments of making the Breakthrough by the Indonesian Constitutional Court was a Historically Breakthrough made by the Indonesian Constitutional Court as the Indonesian Legal Institution in this New   Era of Openness in  Indonesia who is striving hard to establish Legal Justice and Abolishing Corruption in Indonesia which is really significant to establish Healthy Business Climate in Indonesia particularly Law Certainty.

Jakarta, 5 November 2009

Agung Supomo Suleiman

       

Legal Aspects relating to Financing Business Projects

• Financing  Business Projects are very interesting from the legal aspects for a Business Lawyer. From my experience in practicing as as  Business Corporate Lawyer in Indonesia, we are frequently involved in giving advise and assisting our Clients to draft or review their financing arrangement which are covered by a Loan Agreement. This  was  being experienced by the Writer as a Business Lawyer since Year 1980 ies, starting as a Junior Lawyer who  assisted the Senior Layers  in drafting the finance transactions and arrangement relating to financing their  Vessels including air planes 

•  What makes us attractive to such finance arrangement as Business Lawyer is because there are several  elements that have to be taken into considerations. Business Lawyers must be aware that before the Debtors are approved to get this  Funds from the Creditors, based on  the Indonesian Business common practices, such Creditors  shall firstly  conduct the Legal Due Diligence,  which shall be conducted by Independent Lawyers; This Legal Due diligence covers the checking of all the corporate documents  Licenses, Agreements with other Parties, including any Credit Agreements and its Collateral, the amounts of Labors, The Company Rules, The Employment Agreements, Title ownership of its assets, Certificate of Lands/Buildings, the potential Litigation or Arbitration cases ( if any) which involved such Debtors. Based on the Legal Due Diligence, the Independent Lawyers may be requested to make the Report Result of their Legal Due Diligence and may be requested to issue and make a written Legal Opinion addressed to the Creditor/Bank
  

• Besides the Legal Due Diligence, the business prospective of such Investor including the technical aspects are also being conducted by the Bankers as the Creditors. The Creditor will usually request the Investors to make their business presentation, and business cash flow projection  in order to get the overall and comprehensive business prospective in particularly, the cash flows, cash out and cash in streams of such respective credit applicant, to ensure the repayment of the Loan. The most significant element in business is the trust worthiness of such loan applicant, and the capabibilty to repay any and all of the Loan Amount being granted by the Creditor.

• In other words, the most relevant questioned raised by the Bankers or the Financiers are whether the applicant's cash flow prospect are bankable or not. These initial steps are really important and significant, because once the Monies or the Funds are being disbursed by the Bankers in accordance wityh the agreed repayment schedule as shall be stipulated under the Loan Agreements , the Bankers shall be in the risk of non- repayment or default of payment by the Debtor.

• In order to secure the full repayment of the Loan by the Debtor to the Creditor, there are several collateral known and recognized under the Indonesian Laws and regulations among others  the Fiduciary upon the movable as well as immovable assets, the Hak Tanggungan (or in other countries are known as Mortgage) upon the land owned by the Debtor.The Fiduciary Deed shall be registered in the Fiduciary Office, at  the places where the assets are located.
  

•  Once the Pre-Condition under the Loan Agreement are being completed, by the Debtors, as being advised by the Business Lawyer, the Bankers will disburse the amount of Loan in accordance with the disbursement schedule under the Loan Agreements pursuant to the mechnisme of drawndown under such Loan Agreement.  The actual disbursement of the Monies made by the Bankers to the Debtor are the most significant matter for the Debtor, since this Loan is really needed by the Debtor to perform its business operations. Normally there will be a certain Grace Period granted to the Debtor before repayment obligation of the Loan are to be made by the Debtor, pursuant to the terms and conditions of the Credit /Loan Agreement.   

• If the progress  track record and the outcome of the business is a successful one, than such respective success Investors has shown a good re- payment loan performance , and the Bankers shall be willing to offered again further loan to such respective Debtor. From the Writers experience as a Business Lawyer who frequently assisted Clients on seeking funds from Banks to support their business operations, it shows that the Bankers may also need some expertise within themselves to understand the business culture or business nature of our Clients. If our Clients happens to be business players in OIL GAS Mining sectors, the Bankers may  need some education from the oil/gas and mining business players as to the nature of the oil/gas and Copper Mining or Coal Mining business operations including the exposed risks that might occur and the laws and regulations surrounding the business nature in such sectors.

• The Business Lawyer must advise the Bankers, that Banker  who are granting loan to Oil/Gas or Mining Companies conducting operations in Indonesia, must fully be aware that the oil/gas as well as the minerals which "had not yet passed the point of export", cannot be secured as collateral for the repayment of the Loan or Financing transactions, since such minerals/coal and oil and gas are still owned by the People of Indonesia based on the Concept  adopted under the Indonesian Oil/Gas Laws as well as the Mineral and Coal Law.Thus we have to remember that under the Indonesian Legal system regulating the oil/gas and General Mining sectors, the Oil/ Gas Product  as well as the Mining  Products may only be owned by the Investors, if such product already passed "the point of export", where transfer of title on such oil/gas product occurs.

• Accordingly,  the Bankers have to really conduct the economical commercially  aspects of such Debtors business, which may need some inputs from the technical people who are expertise in giving ideas and inputs on the oil/gas and minerals/coal deposits in the Oil/Gas and Mining Block in Indonesia.

Agung Supomo Suleiman
Partner Law Firm Suleiman Agung Co
AGUNGSS BUSINESS LAWYER NOTE

BUSINESS LAWYER Jakarta, Indonesia,
30 October 2009

Business Lawyer must honor Honesty and Good Corporate Governance

• 
  
  
  
  
  Financing  Business Projects are very interesting from the legal aspects for a Business Lawyer. From my experience in practicing as a  Business Corporate Lawyer in Indonesia, we are frequently involved in giving advise and assisting our Clients to draft or review their financing arrangement which are covered by a Loan Agreement. This  was  being experienced by the Writer as a Business Lawyer since Year 1980 ies, starting as a Junior Lawyer who  assisted the Senior Lawyers  in drafting the finance transactions and arrangement relating to financing their  Vessels including airplane.
  
  

• What makes us interesting to such finance arrangement as a  Business Lawyer,  is because there are several  elements that have to be taken into considerations. Business Lawyers must be aware that before the Debtors are approved to get this  Funds from the Creditors, based on  the Indonesian Business common practices, such Creditors  shall firstly  conduct the Legal Due Diligence,  which shall be conducted by Independent Lawyers; This Legal Due diligence covers the legal checking of all the corporate documents,  Licences, Agreements with other Parties, including any Credit and its Collaterals, Title ownership of its assets, Certificate of Lands/Buildings Agreements, the amounts of Labors, The Company Rules, The Employment Agreements, the potential Litigation or Arbitration cases ( if any) which involved such Debtors. Based on the Legal Due Diligence, the Independent Lawyers may be requested to make the Report Result of their Legal Due Diligence and to issue and make a written Legal Opinion addressed to the Creditor/Bank.

• Besides the Legal Due Diligence, the business prospective of such Investor including the financial  and technical aspects are also being conducted for the interests of the Bankers as the Creditors. The Creditor will usually request the Investors to make their business presentation, and business cash flow projection  in order to get the overall and comprehensive business prospective in particularly, the cash flows, cash out and cash in streams of such respective credit applicant, to ensure the feasibility of the Debtors business and to ensure the repayment of the Loan. The most significant element in business is the trust worthiness of such loan applicant, and the capabibilty to repay any and all of the Loan Amount being granted by the Creditor.

• In other words, the most relevant questioned raised by the Bankers or the Financiers are whether the applicant's cash flow prospect are bankable or not. These initial steps are really important and significant, because once the Monies or the Funds are being disbursed by the Bankers in accordance with the agreed repayment schedule as shall be stipulated under the Loan Agreements, the Bankers shall be in the risk of non - repayment or default of payment by the Debtor.

• In order to secure the full repayment of the Loan by the Debtor to the Creditor, there are several collateral known and recognized under the Indonesian Laws and regulations among others  the Fiduciary upon the movable as well as immovable assets, the Hak Tanggungan (or in other countries are known as Mortgage) upon the land owned by the Debtor.The Fiduciary Deeds shall be registered at  the Fiduciary Office, at  the places where the Assets   are located.

•  Once the Pre-Condition under the Loan Agreement are being completed, by the Debtors, as being advised by the Business Lawyer, the Bankers will disburse the amount of Loan in accordance with the disbursement schedule under the Loan Agreements pursuant to the mechnisme of drawndown under such Loan Agreement.  The actual disbursement of the Monies made by the Bankers to the Debtor are the most significant matter for the Debtor, since this Loan is really needed by the Debtor to perform its business operations. Normally there will be a certain Grace Period granted to the Debtor before repayment obligation of the Loan are to be made by the Debtor, pursuant to the terms and conditions of the Credit /Loan Agreement.   

• If the progress  track record and the outcome of the business is a successful one, than such respective success Investors has shown a good repayment loan performance , and the Bankers shall be willing to offered again further loan to such respective Debtor. From the Writers experience as a Business Lawyer who frequently assisted Clients on seeking funds from Banks to support their business operations, it shows that the Bankers may also need some expertise within themselves to understand the business culture or business nature of our Clients. If our Clients happens to be business players in the oil, gas or mining sectors, the Bankers may  need some education from the oil/gas and mining business players as to the nature of the oil/gas and copper mining or coal mining business operations including the exposed risks that might occur and the laws and regulations surrounding the business nature in such sectors.

• The Business Lawyer must advise the Bankers, that Banker  who are granting loan to Oil/Gas or Mining Companies conducting operations in Indonesia, must fully be aware that the oil/gas as well as the minerals which "had not yet passed the point of export", cannot be secured as collateral for the repayment of the Loan or Financing transactions, since such minerals/coal and oil and gas are still owned by the People of the Republic of Indonesia based on the Concept  adopted under the Indonesian Oil/Gas Laws as well as the Mineral and Coal Law.Thus we have to remember that under the Indonesian Legal system regulating the oil/gas and general mining sectors, the Oil/ Gas Product  as well as the Mining  Products may only be owned by the Investors, if such product already passed "the point of export", where transfer of title on such oil/gas product occurs.

• Accordingly,  the Bankers have to really conduct the economical commercially  aspects of such Debtors business, which may need some inputs from the technical people who are expertise in giving ideas and inputs on the oil/gas and minerals/coal deposits in the Oil/Gas and Mining Block in Indonesia.

Those are among others the legals aspects surronding the Finance transactions in Indonesia.

Agung Supomo Suleiman

Partner Law Firm Suleiman Agung Co

AGUNGSS BUSINESS LAWYER NOTE

BUSINESS LAWYER Jakarta, Indonesia

November 2, 2009

Business Lawyer must also detect Brain Versus Heart

• In order for you to be able to survive you have to be tough and sometimes tired and losing your breath. 
  
• You have to access your asset, your strenght, your weakness, and what  you want out of your life.
• If you like to do something that you love then it means you are following your heart
• If you are using more on your brain, there are times where such Brain does not communicate well with your Heart.
• For instance if you love somebody, you shall face the fact that love is sometimes blind, in the sense that frequently it does not meet or match with your mind. There are times that you have to use your Brain, logical way of thinking, but sometimes you are caught or trapped with your emotional feelings of your Heart .
• For instance for a writer or Publisher including if you happen to be a Business Lawyer , we tend to like writing in our Blogs, where it makes you feel comfort, since you like to write what ever there is something popping up in your head. You also have to detect your self whether you are an educator who tries to share your Business Lawyer experiences with others or not.
• If you are an educator, it really feels cool and comforting in your heart,  if you write your experiences of  your life, especially if you have been living for quite a long time in this world, where you tend to share with others about your life experiences. It could be the ups and downs of your life experiences. If you are  are a Business Lawyer for example, sometimes the reality which your are facing is that you have to establish some stage or level of Legal Fees for the Legal Services that you are rendering to your Clients.
• But there are occasions,  where your Client will feel that your Legal Fees are to high, for which they will tend to no longer use your legal services, since from your Client's body language,  you can capture that they are considering  your legal fees are too high or above their expectations.
• You may noticed that your Clients /Customers are also in the same difficult situation to survive, especially at the time when everybody is waiting for the new Cabinet of Indonesia to be established and  announced, since the previous House Of Peoples' s Representative and the President /Vice President Election Year 2009 in Indonesia, to maintain stability and conducive business climate.      
• In this case,  you also tend to  feel whether it is still  profitable to keep on being a Business Lawyer, if your legal fees cannot cop up with the cash outs which you have to spent to run your own  Business Law Firm.   
• This appears to be sort of a weird  situation,  if you as a Business Lawyer are running your own Law Firm, especially if you are in the level of surviving,  since the position of your firm is not in that certain middle or high level position,  where Clients are no longer viewing the Legal Costs that they will incur, but rather needing such Big Firms to  jack up their reputation and image in the Business Circles by using such Big Law Firms.
• During the last years, my Clients are usually Clients who are also trying to survive, and who seeks to sell out part of their equity, or trying to refinance their debt,  for which,  it is rather kind of a survival situation for them, because they are also trying to seek monies / funds to make them survive during this hard economical situation.
• Well, after listening closely to  the Presidential Speech during his appointment by the MPR / Peoples House of Representatives in Indonesia, it sounds that  President Soesilo Bambang Yudhoyono  is a State man, optimist and is asking all the people of Indonesia to unite and start focusing on the State Prosperous, Welfare and Justice
• So we are all expecting to have a positive attitude  in the coming days and so let Our Brain and Heart communicate each other in a balance manner.
• Cheers, 
• Jakarta 23 October 2009
• Agung Supomo Suleiman 
  

Communicative Business Legal Writings By Business Lawyer

• As a Business Lawyer, when you are writing legal business articles  in your business blog what you must be aware of is that not all of your audiences are having lawyer profession background.   

• Thus, your writing must be communicative with the viewers.
• Accordingly, you have to use words which is understandable with your viewers.
• The more you use legal jargon which can not be digested or understood by your viewers, it is a sign that you are just busy with your legal professions and blocking your communications with the viewers.
• Business Lawyers must practice and try to learn to communicate with non lawyers especially the businessmen, management, end-users which may consist of various professional disciplines.
• Team work between various of discipline of professionals and expertise have to be established,  since at the end of the day your role as Business Lawyer must be beneficial and and can be perceived as having an added value with your business circles and community.    
• As a Business Lawyer, you may be master in your legal business professions, but if you fail to pass the message to your viewers you may be useless in the view of the non-lawyers background.
• Don't forget that your viewers in the business community are smart people and can easily know whether you are trying to establish a good team work communication with the viewers, or whether you as a Business Lawyer,  are still busy with yourselves and fail to communicate and pass your message with your audiences.
• We are all learning from our mistakes and every moment of our live we have to correct, learn and increase our capability of establishing a fruitful effective communication with all our viewers.
• Cheers. May your days to come be more fruitful and beneficial to yourself  and others
• Jakarta, 25th October 2009